When we talk about Iraq, we are not talking about an ordinary country, but about a country that possesses resources and history, which qualifies it to be in the ranks of economically developed countries, had it not been for the challenges that the Iraqi economy faced for decades.
The dependence on oil has always been the main driver of the economy, which made it vulnerable to price fluctuations and frequent financial crises, which was reflected in the weakness of other productive sectors, the decline in investment, and the disruption of many development projects.
With the increasing need for radical reforms, the Iraq Fund for Development appeared as a vital initiative aimed at redrawing the features of the Iraqi economy, setting new foundations for sustainable growth, and investing in a more stable and prosperous future.
Iraq Fund for Development
The Iraq Fund for Development is one of the modern economic tools that represents a qualitative shift in development financing mechanisms within the country. It was established in 2023 to serve as a financial institution aimed at supporting sustainable development projects, strengthening non -oil sectors, and stimulating local and foreign investments, which contributes to diversifying the Iraqi economy and reducing its dependence on oil revenues.
The Fund works to provide financing for strategic projects in vital areas such as education, industry, agriculture, infrastructure, and housing, with the aim of improving the quality of life for citizens, advancing economic growth, and creating new job opportunities.
In its strategy, it depends on strengthening the partnership between the public and private sectors, and attracting foreign capital, which makes it a vital tool in restructuring the Iraqi economy according to modern foundations.
Legal and legislative framework
The Iraq Fund for Development has a clear legal framework, as it was approved by the Iraqi government and parliament, to ensure the transparency of its work and independence from the political influences.
It was included in the general budget for 3 years, with two billion dollars annually allocated as an initial budget, which reflects the government’s commitment to support the fund and enhance its role in rebuilding the Iraqi economy.
To ensure the effectiveness of the work of the fund, an administrative structure has been established with a high degree of independence, so that its resources are managed according to the criteria of good governance, and under the supervision of supervisory committees to ensure that funding is directed to real development projects, away from waste or financial corruption.
This independence makes it different from many previous initiatives that have not achieved its goals due to the absence of effective management and long -term planning.
Work mechanism and the most important sources of financing
The Fund relies on a mechanism of work based on defining development priorities according to the needs of the Iraqi economy, with a focus on projects that achieve the highest added value and contribute to sustainable development.
These projects are funded through a mixture of government resources, investment partnerships, grants and development loans, and revenues resulting from the projects supported by the fund.
Among the most important sources of his resources:
- Governmental allocations that are passed annually in the state budget.
- Investment revenues resulting from the fund -backed projects, which enhance its ability to finance new projects.
- Foreign financing and international aid, through cooperation agreements with global financial institutions.
- Contributing from the private sector through development partnerships and direct investments in projects funded by the fund.
Fund work fields
The fund works to finance projects with strategic dimension aimed at strengthening the Iraqi economy in the long run. Among the most important sectors on which he focuses:
- Education .. Eduba project as a model
Education is one of the most prominent areas that the Fund pays attention to, in recognition of the importance of investing in human capital to achieve sustainable development.
From this standpoint, the “Iduba” project was launched for schools, which aims to update the educational system in Iraq, and to provide an advanced educational environment that keeps pace with global technological developments.
The name of the project was inspired by the first school in history in ancient Iraq, to be a symbol of Iraq’s return to its pioneering role in spreading knowledge.
The project is based on the establishment of modern schools equipped with the latest educational means, while integrating technology and artificial intelligence in the curricula, which helps in bridging the gap between education and the requirements of the labor market.
- Housing … “War and Owning” project
In light of the exacerbation of the housing crisis in Iraq, the “wages and ownership” project came as one of the innovative solutions provided by the fund.
This project is based on the principle of teaching rent, where citizens are available to rent real estate with the possibility of gradually converting rent into ownership, which facilitates those with low incomes to own housing without the need for long -term loans.
This model contributes to providing sustainable housing solutions, stimulating the construction sector, and encouraging investment in real estate, which enhances economic activity and opens new opportunities in the labor market.
- Diversification of the economy … support the productive sectors
The Fund aims to reduce oil dependence by supporting other economic sectors, such as agriculture, industry, tourism, and technology. By financing modern agricultural projects, agricultural production and food security are improved.
While supporting industrial projects contributes to creating new job opportunities, reduces dependence on import, and enhances the competitiveness of Iraqi products in global markets.
Challenges
Despite the promising opportunities provided by the Fund, it faces multiple challenges, including bureaucracy, administrative corruption, the absence of political stability, and the difficulty of attracting foreign investors in an unstable work environment.
The success of the fund also requires a long -term commitment to the government, and the existence of supportive policies that guarantee its continuity and effectiveness over the coming years.
How can local and foreign investors participate in the fund?
The fund is a great opportunity for local and foreign investors who want to contribute to profitable development projects. Investors allow several ways to participate, such as:
- Partnership with the government in implementing strategic projects, through the public and private partnership system.
- Direct investment in the projects funded by the fund, especially in sectors such as renewable energy, infrastructure, and technology.
- Providing financing for small and medium enterprises through the fund -backed lending programs, providing an opportunity to develop the private sector.
- Entering the long -term investment programs launched by the fund, which provides stable and guaranteed returns for investors.
Towards a more stable economic future
As the fund continues and its financing for development projects, hope becomes a real economic renaissance in Iraq closer to reality.
Instead of relying on short -term solutions, the fund works to establish a diverse and sustainable economy, it guarantees future generations better opportunities for a decent life.
Iraq, thanks to its resources and competencies, is able to restore its economic position, and the Iraq Fund for Development may be the main key to achieving this goal.
But the success of this fund is dependent on the extent of adherence to transparency, good management, and guaranteeing independence away from political tensions, to be indeed a tool for economic reform, and a gateway to a more prosperous future.
